So my wife and I have an '04 neon SE. My wife noticed that the brake light came on and that the brakes seemed to need to be mashed before it fully stopped. This afternoon, I noticed brake fluid flowing/dripping out from the rear passenger brake. Brake fluid reservoir was dry. I attempted to take off the tire and one of the bolts sheared off with the lug nut . There seemed to be the same problem on another lug nut. I didn't want to break that one too, so I stopped. My questions are...

1) Can I replace the lug bolts or will i need to replace a more expensive part?
2) What could be causing the brake fluid be coming out?

Thank you in advance for your replies. I am not too mechanically inclined, hopefully I can work it out with all of your help.

 

yes you can replace the studs and the leak is coming from the wheel cylinder of the drum break i just replaced that myself on my 03 sxt it takes about 20 min and costs about 10 bucks plus fluid